Skip to main content

Tax Evasion and Economic Growth: Empirical Investigation in Sub-Saharan Africa | Chapter 07 | Emerging Issues and Development in Economics and Trade Vol. 3

Tax is the income which is paid to the government in order to fulfill the need of the public. However tax evasion is the act of not paying the tax by use of illegal ways. Allingham and Sandmo being the first researchers studying the tax evasion found a relationship of tax evasion with low penalty fees and a low detection. The tax evasion basically is affected by various factors but it also affects many economic factors. Sub Saharan Africa being a developing region is facing the phenomenon of tax evasion in a crucial way. This study measures the impact of the tax evasion on the Gross Domestic Product (GDP) per capita of Sub Saharan Africa. The relationship between the GDP per capita and tax evasion is tested using the generalized least squared whereby it is found that there is a positive impact of tax evasion on the GDP per capita however the p-value states that the tax evasion is insignificant and is not an important component for the determination of the GDP per capita. Moreover in the presence of tax evasion, this study shows that GDP per capita has also a negative relationship with the Foreign Direct Investment (FDI), positive relationship the Gross Domestic Fixed Capital Formation (GDFCF), a favorable connection with the export, a negative relationship with the import, a positive impact on the inflation and a negative relationship with the government expenditure. To fight against tax evasion for the economic benefit of Sub Saharan Africa, it is advised to review the tax system, to implement strict and severe penalties and very high fines for tax evaders. Moreover, the tax authorities of Sub Saharan Africa need to appoint more experts in auditing department to be able to detect the non-compliance tax payers easily and rapidly.

Author(s) Details

B. Jugurnath
Department of Accounting and Finance, Faculty of Law and Management, University of Mauritius, Réduit 80837, Mauritius.

B. Aumeerun
Department of Accounting and Finance, Faculty of Law and Management, University of Mauritius, Réduit 80837, Mauritius.

H. Soondram
Department of Accounting and Finance, Faculty of Law and Management, University of Mauritius, Réduit 80837, Mauritius.

View Book:


Popular posts from this blog

Consensus Summit: Lipids and Cardiovascular Health in the Nigerian Population | Chapter 09 | Current Trends in Food Science Vol. 1

Aims: To issue a consensus statement on Lipids and Cardiovascular Health and the impact of their interrelationship in Nigerian Population. Study Design: Experts from a range of relevant disciplines, deliberated on different aspects of Lipids and Cardiovascular Health in the Nigerian Population at a Summit. Place and Duration of Study: The Summit was held in April 2016 at the Nigerian Institute of Medical Research. Methodology: Presentations were made on central themes after which expert participants split into four different groups to consider the questions relevant to different sub themes of the title. Consensus was arrived at, from presentations of groups at plenary. Conclusion: With the increase in the prevalence of NCDs, especially Cardiovascular Disease in Nigeria, and the documented evidence of deleterious effects of lipids, the expert panel called for an urgent need to advocate for the general public and health professionals to make heart-friendly

A Review on Gongronema latifolium, an Extremely Useful Plant with Great Prospects | Chapter 11 | Recent Advances in Biological Research Vol. 3

Gongronema latifolium is a plant that has a wide range of nutritional and ethnomedical uses in different tropical African communities. Scientific reports on the chemical composition and bioactivity (anti-inflammatory, antimicrobial, antidiabetic, antioxidant, anticancer and allelopathic properties) of the plant material by different authors are discussed in this review. Future prospects of the plant extracts in the areas of herbal formulations, food preservation, alcoholic fermentation and beer production, drug discovery and allelopathy are also highlighted. Author   Details: Olugbenga Morebise Faculty of Basic Medical Sciences, All Saints University School of Medicine, Roseau, Commonwealth of Dominica. Read full article: View Volume:

An Overview of Ultrasonic Technology and Its Applications in Food Processing, Preservation and Quality Control | Chapter 03 | Current Research in Science and Technology Vol. 3

Ultrasound is one of the emerging technologies that were developed to minimize processing, maximize quality and ensure the safety of food products. In recent years, ultrasound technology has been used as an alternative processing option to conventional thermal approaches. Although Ultrasonication methods have been used for years in research and diagnostics, major advances have been made in the last decade. The applications for which high power ultrasound can be used range from existing processes that are enhanced by the retrofitting of high power ultrasonic technology, to the development of processes up to now not possible with conventional energy sources. The present paper reviews the generation, principle mechanism, properties, process parameters, applications, merits and demerits and future trends of the ultrasound technology in the food processing. Author(s) Details Er. Bogala Madhu Department of Processing and Food Engineering, College of Technology and Engineering, MP